2003 (1) TMI 364 - AT - Central Excise

Summary

Issues:
Classification of "Keshraj Oil" under Sub-heading 3003.30 of the Central Excise Tariff Act as an Ayurvedic medicine or under Heading 3305.10 as a perfumed hair oil.

Analysis:
The appeal involved the classification of "Keshraj Oil" manufactured by M/s. Burman Laboratories Ltd. The appellant argued that the product should be classified as an Ayurvedic medicine under Sub-heading 3003.30, emphasizing its therapeutic and prophylactic value. The advocate highlighted that the product's label clearly indicated its Ayurvedic nature and medicinal properties, containing ingredients traditionally known for their therapeutic benefits. Reference was made to authoritative Ayurvedic texts to support the classification. Additionally, comparisons were drawn with previous tribunal decisions regarding similar oils classified as Ayurvedic medicaments.

On the other hand, the respondent contended that the product should be classified under Heading 3305.10 as a perfumed hair oil based on Note 2 to Chapter 33 of the Tariff. It was argued that the labeling of the product as "Dabur Keshraj Oil" indicated its intended use for hair application, regardless of any subsidiary therapeutic value. The respondent highlighted the addition of perfumes to the product and referenced tribunal decisions emphasizing the requirement for positive perfume addition to classify an oil as perfumed. Furthermore, distinctions were drawn between the impugned product and previous cases where specific dosages and directions were provided.

After considering both arguments, the tribunal compared "Keshraj Oil" with "Himtaj Oil," previously classified as an Ayurvedic medicament. It was noted that both products shared similar ingredients and therapeutic properties. The tribunal observed that the label of the impugned product emphasized its cooling and therapeutic effects on the scalp, without mentioning cosmetic or toiletry use. The absence of specific dosages or directions for use did not alter the classification, as the product was intended for scalp application, not hair. Following the precedent set by the classification of "Himtaj Oil" as an Ayurvedic medicine, the tribunal classified "Keshraj Oil" under Sub-heading 3003.30 of the Central Excise Tariff Act as an Ayurvedic medicine, rejecting the classification as a perfumed hair oil under Heading 3305.10.